TYLER JUNIOR COLLEGE School of Continuing Studies 1530 SSW Loop 323 Tyler, TX

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1 TYLER JUNIOR COLLEGE School of Continuing Studies 1530 SSW Loop 323 Tyler, TX Education & Training Plan Finance Professional Program Student Full Name: Start Date: End Date: Program Duration: 6 months (due to open enrollment, start and end dates are determined by the student) MyCAA Information Course Code: TJC-MET 40 Program Duration: 6 Months Course Contact Hours: 375 Student Tuition: $3,799 The Finance Professional Businesses of all kinds require professionals who understand the intricacies of finance in a variety of ways. Finance professionals have the opportunity to put their skills to work in a number of different fields providing analytical support that helps to drive the most important decisions for C-level executives. This program presents students with the frameworks and tools used to measure value both in terms of corporate and personal assets. Students will gain a fundamental understanding of the principles of valuation, the concepts of time value of money and risk as well as the major determinants of value creation. The Finance Professional Program Taking students through both theoretical and real-world examples to demonstrate the valuation of assets, this program will help students in various decision-making processes not only in business, but in personal finance as well. Moreover, this program will introduce students to the basics of evaluating corporate financial statements, evaluating certain aspects of a company to determine its overall wealth or health, both of which go to shareholder value every company s overall mission. The program ensures students have a firm understanding of risk and return, individual and collective financial markets, the application of capital budgeting tools and learn how to properly evaluate capital structure and dividend policy in a global context. The Finance Professional program provides students with a foundational knowledge of financial management. The program covers key language and terminology, time-value of money, financial markets and securities, financial statements, financial analysis, risk and return, valuation of stocks and bonds, capital budgeting and valuation, cost of capital and capital MET Education & Training Plan Page 1

2 structure, working capital management, dividend policy, and international finance. Students are required to apply the various financial tools and understand how they impact financial decisionmaking. Program Objectives At the conclusion of this program, students will be able to: Explain why the primary role of the firm and the financial manager is to maximize shareholder wealth Analyze financial statements Apply time-value of money tools Explain risk and return relationships Evaluate financial markets and securities traded on financial markets Apply capital budgeting tools Evaluate capital structure and dividend policy Evaluate how international issues impact the firm Use Microsoft Office Organizational Behavior Professional Program Detailed Student Objectives: UNDERSTANDING THE ROLE OF THE FIRM AND FINANCIAL MANAGER Recognize the primary goal of the firm Describe the key activities of the financial manager Justify the importance of finance to business careers Identify key forms of business organization Analyze ethical situations in finance Define agency theory Describe the relationship between agency theory and the firm Trace the implications of the efficient markets hypothesis FINANCIAL MARKETS, FINANCIAL INSTRUMENTS AND INTEREST RATES Describe the different roles of financial institutions and financial markets Distinguish between the money market, capital market, primary market, and secondary market State the differences between organized exchange and the over-the-counter market Contrast equity versus debt Explain how common stock is issued Identify examples of corporate bonds Identify the nominal rate of return, the real rate of return, the inflation premium and the risk premium Understand the relationship between corporate bond ratings and risk Describe a yield curve and how each of the three basic theories explain its shape UNDERSTANDING FINANCIAL STATEMENTS Recognize the difference between cash and profit Explain how depreciation impacts financial decision making Distinguish between book value and market value Identify the three major financial statements Explain how financial statements are used in forecasting Compare the advantages and disadvantages of using historical data Demonstrate how tax issues can impact financial decision making FINANCIAL STATEMENTS AND RATIO ANALYSIS Recognize the purpose of ratio analysis with internal and external users Calculate the current ratio and quick ratio MET Education & Training Plan Page 2

3 State the uses of liquidity ratios Calculate asset utilization ratios including inventory turnover, receivables turnover, and total asset turnover Demonstrate how asset utilization ratios impact financial decision making Calculate TIE and debt ratios Calculate profitability and market value ratios including ROE, ROA, market-to-book, and P/E ratios Name the limitations of ratio analysis APPLYING TIME VALUE OF MONEY TOOLS Explain the concept of time value of money, including compounding and discounting Compute the present and future value of a single sum Calculate present value and future value of ordinary annuities, annuities due and perpetuities Value an asset with a mixed stream of cash flows Solve for the interest rate and number of periods Adjust the time value of money formulas for more frequent compounding Calculate the effective annual rate Apply time value of money concepts to a personal situation Solve for the payment of a loan, annual retirement savings, and growth rate Describe the three key things necessary to value any asset Identify the generic formula needed to value any asset UNDERSTANDING RISK AND RETURN RELATIONSHIPS Calculate the return of stock over a single year Calculate the expected return and standard deviation of a single asset Choose between two assets based upon risk and return Calculate the expected return and standard deviation of a portfolio Provide real life examples of market risk and firm specific risk Explain the relationship between correlation, diversification and risk Differentiate between total risk, market risk and diversifiable or firm specific risk Describe Beta and its importance in finance Define the capital asset pricing model (CAPM) Solve for the required return using the CAPM Graph the Security Market Line (SML) VALUATION OF STOCKS AND BONDS Apply time value of money concepts to a personal situation Use the constant growth stock valuation method Calculate the dividend payment and value of a preferred stock Calculate the value of a common stock, assuming no growth and constant growth Value a bond with annual & semi-annual coupon payments Calculate the yield to maturity (YTM) of a bond with annual and semi-annual coupon payments Analyze how bond values are affected by the coupon payment, time to maturity, market interest rates, and par value Identify various bond features including par value, coupon rate and maturity List two possible reasons why the required return on a bond may differ from its par value Compare preferred stock to bonds and to common stock UNDERSTANDING AND APPLYING CAPITAL BUDGETING TOOLS Recognize the primary goal of the firm Describe the key activities of the financial manager Compute the present and future value of a single sum MET Education & Training Plan Page 3

4 Calculate present value and future value of ordinary annuities, annuities due and perpetuities Value an asset with a mixed stream of cash flows Apply time value of money concepts to a personal situation Explain the capital budgeting process Solve capital budgeting decisions with the Net Present Value (NPV) method Use the payback method to make capital budgeting decisions Show how the IRR method is used for capital budgeting decisions Identify factors that may impact project ranking Define capital rationing Calculate the Profitability Index Differentiate fixed versus variable costs Perform a break-even analysis IDENTIFYING RELEVANT CASH FLOWS FOR CAPITAL BUDGETING State the importance of incremental cash flows Compare expansion and replacement projects Compare independent and mutually exclusive projects Identify sunk, opportunity, and other relevant costs Explain how changes in Net Working Capital (NWC) impact capital budgeting Calculate the incremental operating cash flows of an expansion and replacement project Calculate the terminal cash flow of a capital budgeting project Calculate the gain or loss of the sale of an asset and the tax cost or benefit associated with each UNDERSTANDING THE COST OF CAPITAL Explain Weighted Average Cost of Capital (WACC) Calculate after-tax cost of debt Calculate the cost of preferred stock Calculate the cost of equity using the dividend valuation model Calculate the required return using the WACC formula Describe why the WACC should be used to evaluate individual projects rather than the particular funding used for individual projects Use the constant growth stock valuation method Calculate the dividend payment and value of a preferred stock Calculate the value of a common stock, assuming no growth and constant growth Value a bond with annual & semi-annual coupon payments Calculate the yield to maturity (YTM) of a bond with annual and semi-annual coupon payments Explain how RADR can be used to adjust for various risk factors among projects within a firm Provide real life examples of market risk and firm specific risk (NA) MANAGING CURRENT ASSETS AND CURRENT LIABILITIES Justify the importance of working capital management State the purpose and steps to complete a cash budget Complete a simple cash budget Demonstrate the use of the cash conversion cycle Explain how the cash conversion cycle is shortened Justify the importance of credit standards Calculate the cost of forgoing trade discounts Compare unsecured and secured short term liabilities Explain the importance of inventory management MET Education & Training Plan Page 4

5 CAPITAL STRUCTURE, DIVIDENDS, AND INTERNATIONAL CONSIDERATIONS Define capital structure Describe, in theory, the optimal capital structure Recognize how financial leverage affects Earning Per Share (EPS) List two reasons why dividends matter Indicate when a dividend can be paid Name the factors affecting Dividend Policy List two common types of dividend policies Define stock splits and stock dividends Convert foreign currencies to home currency Describe three methods of international expansion Recall three sources of international risk Identify two techniques for managing international risk Note: In order to qualify for an externship, students must successfully complete the program, including all quizzes and final exams, and be available for a background check and/or a potential drug screen. This program can be completed in 6 months. However, students will have online access to this program for a 12-month period. MET Education & Training Plan Page 5

6 Education and Certifications Finance Professional Program candidates should have or be pursuing a high school diploma or GED. National Certification Available: Students who complete this comprehensive course would be prepared to sit for the Microsoft Office Specialist (MOS) Certification Exam. MICROSOFT OFFICE Module Use an integrated software package, specifically the applications included in the Microsoft Office suite Demonstrate marketable skills for enhanced employment opportunities Describe proper computer techniques for designing and producing various types of documents Demonstrate the common commands & techniques used in Windows desktop List the meaning of basic PC acronyms like MHz, MB, KB, HD and RAM Use WordPad and MSWord to create various types of documents Create headings and titles with Word Art Create and format spreadsheets, including the use of mathematical formulas Demonstrate a working knowledge of computer database functions, including putting, processing, querying and outputting data Define computer terminology in definition matching quizzes Use the Windows Paint program to alter graphics Use a presentation application to create a presentation with both text and graphics Copy data from one MS Office application to another application in the suite Use and the Internet to send Word and Excel file attachments Demonstrate how to use the Windows Taskbar and Windows Tooltips Explain how copyright laws pertain to data and graphics posted on the Internet Take the college computer competency test after course completion Follow oral and written directions and complete assignments when working under time limitations Note: Although the Microsoft Office Module is not required to successfully complete this program, students interested in pursuing free Microsoft MOS certification may want to consider completing this Microsoft Office Module at no additional cost. MET Education & Training Plan Page 6

7 System Requirements: Windows Users: Windows 7, XP or Vista 56K modem or higher Soundcard & Speakers Firefox, Chrome or Microsoft Internet Explorer Mac OS User: Mac OS X or higher (in classic mode) 56K modem or higher Soundcard & Speakers Apple Safari ipad Users: ipad ios 5.1 (or latest) Screen Resolution: We recommend setting your screen resolution to 1024 x 768 pixels. Browser Requirements: System will support the two latest releases of each browser. When using older versions of a browser, users risk running into problems with the course software. Windows Users: Mozilla Firefox, Google Chrome, Microsoft Internet Explorer Mac OS Users: Safari, Google Chrome, Mozilla Firefox Suggested Plug-ins: Flash Player Real Player Adobe Reader Java MET Education & Training Plan Page 7